Processing

On Tasmanian Country Hour with Tony Briscoe: The protest was outside the McCain processing plant in Smithton and involved farmers and workers in the potato industry along with politicians. The event was organised as the threat of European potatoes being dumped in Australia remains a possibility because of COVID-19.

Snack maker Utz Quality Foods, LLC has entered into a definitive agreement with Collier Creek Holdings, a special purpose acquisition company, to form Utz Brands, Inc., a leading pure-play snack food platform. After nearly a century as a family-owned, privately-held company, the transaction will introduce Utz as a publicly listed company, with an expected initial enterprise value of approximately $1.56 billion, or 11.6x its estimated 2021 pro forma adjusted EBITDA of $134 million. It is expected Utz Brands will trade on the New York Stock Exchange under the ticker symbol “UTZ.”

The release of the end-March stocks estimate did enable the UK domestic market to encapsulate the partial impact that the coronavirus is having on the potato industry. However, it does not allow us to paint the whole picture as we finish this marketing year and head into next season. Anthony Speight, Analyst at AHDB, wrote the following report that we gladly re-publish here.

Union delegates are demanding immediate action from the federal government to protect regional jobs from the threat of cheap imports. Alex Ford reports for The Courier. Rallying at the Ballarat McCain processing plant on Friday morning with workers, McCain representatives, and federal Ballarat MP Catherine King, AMWU state secretary Tony Mavromatis said federal authorities needed to take the issue seriously before the market was flooded with European products.

According to a report by Anthony Speight, Analyst at AHDB, the month of May has been relatively static across the industry in general. The initial lockdown caused a divergence in demand between the retail and food service sector. Speight writes in his report: “We have since seen their respective demand stabilise momentarily and we are at a juxtaposition that relies on further uplifting of lockdown restrictions for demand to increase.”Throughout May we had increased reports of chip shops reopening. Outlets that featured on take out apps, mostly in built up urban areas have reported to have a successful customer base.

Signs are showing that frozen fry demand is improving quicker than the industry had anticipated, according to a May 27 report by North American Potato Market News. Restaurant chain sales in the U.S. improved five consecutive weeks from early April to mid-May, although were still down 21%, year-over-year in the week ending May 17.

According to a report by Pan Demetrakakes, Senior Editor at Food Processing, McCain Foods is delaying the expansion of its potato processing facility in Othello, Wash., due to the coronavirus pandemic. Demetrakakes says the project at the facility, about 100 miles southwest of Spokane, would have added another 170,000 square feet to the plant for a new processing line for battered and conventional French fries.

According to a report published earlier this week by the Washington Ag Network, the National Potato Council and state grower organizations wrote Ag Secretary Sonny Perdue last week to talk about potatoes that have nowhere to go for processing. According to the Council, more than 1.5 billion pounds of fresh potatoes for processing and potato products are trapped in the supply chain with no likely customers.

Think your favourite food is made or grown in New Zealand? Brace yourself for some bad news. In the aftermath of the coronavirus lockdown, many Kiwis are making a conscious effort to support local businesses and brands. News that Wattie’s Potato Pom poms are made in Belgium, its apricots are sourced from South Africa, and its asparagus from Peru may be hard to swallow.

Zimbabwe’s potato producers say efforts to add value to their produce are being frustrated by financial institutions’ reluctance to fund greenfield projects and they have appealed for government intervention to help them set up processing plants. Ronald Museka, the Potato Industry of Zimbabwe chairman, said local financial institutions were only eager to fund the growing of potatoes, but farmers wanted to ramp up value addition and explore export markets.

Potatoes New Zealand is asking the New Zealand government to give urgent consideration to imposing short-term measures limiting the importation into New Zealand of heavily discounted frozen potato chips to avoid a food security threat. This follows the Australian Potato Industry’s move to do the same. Globally, the disruption of supply chains, and particularly sales to hospitality, by virtue of COVID-19 restrictions has led to the complete collapse of potato prices in major production centres, in particular the European Union (EU).

Australian potato farmers are outraged to discover a $1billion COVID-19 assistance package given to European growers could result in a flood of French fries into the market from overseas. An industry representative body for vegetable and potato growers, AUSVEG, said an influx of about 2.6million tonnes of excess potatoes into Australia would lock farmers out of the fast-food industry. The two biggest potato processors, McCain Food and Simplot, have been working with AUSVEG alongside other companies to address the issue

Australian potato growers are digging in for an anti-dumping fight with Europe as it reportedly threatens to flood the local market with frozen French fries. AUSVEG said potato growers faced big losses if large volumes of processed potatoes were imported from Europe as a consequence of a €650 million ($1.08 billion) COVID-19 assistance package.

With prices and supply facing uncertainty due to lockdowns and high, panicked demand especially in the APAC region after the COVID-19 outbreak, it might be expected that potatoes would be able to benefit somewhat here – but in reality, there have been multiple factors hindering this opportunity, according to International Potato Center Asia Regional Director Samarendu Mohanty.

Each time a bag of potato chips is opened in the United States, there is a one in four chance that it’s filled with Michigan-grown potatoes. Michigan is the largest producer of potatoes grown for the potato chip industry in the US, A concerted effort made by industry stakeholders, spearheaded by Michigan State University Extension and MSU AgBioResearch, and coordinated by the Michigan Potato Industry Commission, has built a partnership that is growing the industry.

With restaurants closed due to COVID-19, the potato industry in Canada has taken a big hit. Lukie Pieterse, editor and publisher of Potato News Today joined guest host Heather Morrison of CBC Saskatchewan to talk about the impact the pandemic has had on the industry.

Potato processor McCain Foods (GB) Ltd is using ethylene and specifically the anti-sprouting system Restrain as its preferred replacement for the soon to be withdrawn CIPC, according to a press release issued by Restrain company. According to the release, McCain Foods GB, the UK business of the world’s largest producer of frozen potato products, has been using ethylene for a few years and is now recommending Restrain ethylene generators to its potato growers in the United Kingdom.

There is, perhaps, no vegetable in the world as versatile as the potato. And farmers in Assam, India, are proving this fact by developing numerous innovations to bring new products into local markets. The innovations have been created through Value Chain Schools (VCS) within the Assam Agri-Business and Rural Transformation Project (APART) – a project dedicated to fostering entrepreneurial skills among small and marginalized farmers in Assam.

“Pivoting” is a term that has been thrown around by entrepreneurs as they try to deal with the effects of the COVID-19 crisis. But Jose Magsaysay Jr., founder and chairman emeritus of the food kiosk pioneer Potato Corner, pivoting is not always the solution for crumbling businesses. “You pivot depending on your resources. Look into yourself before you pivot. Am I a player now in this crisis? If I’m not and I don’t have the money to pivot, I will just conserve, stop what I’m doing, and spot trends,” he said during a webinar organized by the Philippine Franchise Association on Thursday.

Britain’s farmers are struggling to work out what to do with tens of thousands of tonnes of spare potatoes when their season ends this summer after the closure of fish and chip shops during the lockdown triggered a collapse in demand.

A $4.7 million provincial program developed in conjunction with the Prince Edward Island provincial government and Cavendish Farms should help deal with a surplus of potatoes accumulating in the warehouses of processing growers, says the general manager of the Prince Edward Island Potato Board in Canada. However, there is concern in some quarters about the fact that all of the funds are destined for the processing company. The district director of the National Farmers Union said the deal raises “a lot of red flags.”

The amount of potatoes in storage for Canada’s processing sector is 4.2 per cent above the three-year average as of May 1, 2020, according to the United Potato Growers of Canada’s (UPGC) latest update. The UPGC attributes the higher numbers to the COVID-19 pandemic which has “had a dramatic effect on french fry sales as sit-down portions of quick service and fast casual restaurants were closed.” The Potato Growers of Alberta estimates about $60 to $70 million worth of processing potatoes are still in storage.

Processor Lamb Weston has returned part of the 2019 potato crop to Northwest farmers, according to a report by Capital Press. The company doesn’t have the ability to run all of the 2019 potatoes remaining in storage, said Dale Lathim, executive director of Potato Growers of Washington. About 30% of the potatoes still in growers’ storage has been returned to farmers, Lathim said. He said that’s about 4 million hundredweight of potatoes in Washington.

Lamb Weston has reported four cases of COVID-19 among its employees in Boardman. Three of the cases at the company’s Boardman facilities were reported in mid-April and one early this month, health officials said. “In each of the four cases in Boardman, we are confident we took the right measures for our team members’ safety,” said spokesperson Shelby Stoolman.